Lender recommendation

Salesforce pmyz88
Sep 8 21 Comments

TC over 800K and 750K down paymen

SF bay area so targeting close to $3M

Two lenders I talked to want 25% down plus 24 months principal and interest.
Sounds pretty conservative.

So any pointers?

Thanks!

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TOP 21 Comments
  • Apple LSjj31
    Man, I have no advise or pointers for you but I hope at some point in my life I get to make decisions like this, you’ve made it in life lol.
    Sep 8 0
  • Roku cruella
    Power couple would be my guess.
    Sep 8 0
  • NIO / Product LeakySky
    What’s this 24 months P&I business? For TC of 800K, a mortgage of 2.25M is not recommended unless you have healthy passive income.
    Sep 8 6
    • Salesforce pmyz88
      OP
      With 25% down for $3M, it is about $13K monthly all included.
      We are close to $70K per month before taxes so how is this high ?!
      Sep 9
    • NIO / Product LeakySky
      70K per month translates to $840K a year. Based on your original post of 800K TC, don’t you pay any substantial taxes in People’s Republic of California?🧐Compute based on your take home pay check rather than pre tax or after including equity which vests over 3-4 years. I doubt that is $70K pre tax per month. And if you do have that much equity vested, it’s better to put up a higher down payment. My personal rule of thumb is PITI must be within 1 bi weekly paycheck of the lower earning partner. You are of course free to apply your own yardstick as not everyone has the some aspirations or needs but your above answer points to a need for more fiscal discipline imho. Otherwise even 800K TC will prove to be too less.
      Sep 9
    • Salesforce pmyz88
      OP
      3/4 of TC is cash/bonus and only 1/4 is RSU so I think it is too conservative
      Sep 9
    • NIO / Product LeakySky
      When you compute your monthly spending which includes PITI, only take into account your post tax, post 401K, post ESPP bi weekly take home pay. Don’t count your bonus or equity. Those have to be pure savings if your base is decent which it seems to be as per your description. And game for the fact that one of you can be out of a job anytime. Hence, better to up your down payment vs getting into a higher monthly payment even with lower interest rates. When it comes to finances it’s better to be fiscally conservative with your spending vs not. Don’t be like that Los Altos Hills couple I met couple of months back who are desperately trying to offload their $4m home for $3m - that’s cheap for that area and interestingly both are deriving majority of their income from paychecks (very rare for Los Altos Hills residents on both counts, which is why it caught my attention). Their loss, my gain.
      4d
    • Salesforce pmyz88
      OP
      Thanks but still think it is too conservative ..
      4d
  • Xilinx pMfv81
    With a higher combined TC, we bought a 2M home with 50% down.

    I dont think the lender is being conservative.
    Sep 8 3
    • Salesforce pmyz88
      OP
      Hum 50% down ..
      Isn’t that silly given interest rates?
      Sep 9
    • Xilinx pMfv81
      It's good to have primary home paid off!
      7d
    • Salesforce pmyz88
      OP
      It isn’t paid off if you borrow 50%
      7d
  • This comment was deleted by original commenter.

    • Salesforce pmyz88
      OP
      I should have said it is combined TC so x2
      Sep 8
    • New pkko62
      Thanks
      Sep 8
  • Facebook hyper
    What's your age? Just curious
    Sep 9 1
  • Yelp bbtea
    Who are the two lenders you talked to? I believe, although for much less loan amount, plenty of banks do 20% down, and fewer reserve, like Citi does 6 month reserve, boa 12 month?
    Sep 8 1
    • Salesforce pmyz88
      OP
      BOA is one of them, they do 12 months with 30%. Other is a small lender and they had a different rule which was about same amount
      Sep 9
  • Amazon newAz
    What is your title sir
    Sep 8 1
    • eBay
      seat

      eBay

      BIO
      Why did you click on me 😡
      seatmore
      Data Scientist II
      Sep 8